Buying property in the U.S. may increase your taxes

Buying a vacation property in the U.S. could land you with an extra tax bill.

A new report by CIBC called ‘Your US Property Could Be Quite Taxing’ says that many Canadians get caught out by not realising the potential tax implications of their second home in the sunshine.

There are lots of pitfalls including tax burdens from both U.S. and Canadian authorities when renting out your second home and capital gains tax if you sell it.

There are ways to mitigate the burden and the report suggests that while it can be complex, careful planning can save thousands of dollars.

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